The case for investing in financials
Financial services companies are evolving their business models to meet post-pandemic challenges and increasing competition.
By Alex Crooke
Entire tomes have been devoted to investing in the financial services sector – hardly surprising when you consider its size, and therefore its significance to the world's capital markets. To say the financial sector is large doesn't do it justice. Of the total market capitalisation of the S&P 500, the world's largest stock market index, financials account for just under 10% of the $28.5 trillion valuation.
1 Turning our attention to the UK market, the sector's dominance is more pronounced still, representing over 25% of the entire market capitalisation of the FTSE All-Share Index.